Nene Wants “Freeze” On Personnel Expansion In Provinces

OCTOBER 23, 2014

The Eastern Cape Government will be “strongly encouraged” to “freeze” personnel expenditure and review vacancies.

Presenting his Medium Term Budget Policy Statement in the National Assembly yesterday, Finance Minister Nhlanhla Nene said that “to contain compensation budget pressures, government personnel headcounts will be frozen for the next two years.

“Any increase in personnel will be funded from existing allocations.”

Nene also announced that a review would be conducted over the course of the next year that would “consider the permanent withdrawal of funded vacancies.

“Natural attrition will create space for new appointments,” he stated, adding that exceptions would be considered for critical positions, “with the onus on departments to justify exceptions.”

Nene wants provincial governments to impose the same “freeze” and adopt the same approach to existing vacancies, saying: “Provincial governments will be strongly encouraged to follow the same approach.”

Figures tabled with the MTBPS documentation show that the Eastern Cape’s equitable share of national revenue will increase from R51.7 billion in the current financial year to R60.1 billion by 2017/18.

From 2015/16, three functions currently performed by provinces: further education and training, adult education and training and port health, will be transferred to national government.

Funds will be shifted from the provincial equitable share and the Further Education and Training Colleges Grant.

It says that changes to provincial conditional grants in the period ahead include the “reprioritisation of funds from the Human Settlements Development Grant to fund the expanded scope of work for planning and developing housing projects, now to be undertaken by the Housing Development Agency”.

The MTBPS says a new maths, science and technology grant for provinces will be created. - MetroMinutes

Photo caption: Finance Minister Nhlanhla Nene.